Answer:
Today, the funder will invest 342,741.82 dollars
Explanation:
We invest on a lump sum of STRIPS which yield 6% with semiannual compounding.
Our target is 550,000 in eight years and each STRIPS is valued at 5,000
The STRIP is the coupon payment or maturity payment of a bond which sales like a zero coupon bond so we need to discount the 550,000 at the market rate to know the market price of the STRIPS:
Maturity $550,000
time 16.00 (8 years x 2 compounts per year)
rate 0.03 ( 6% annual divide into 2 to get semiannual rate)
PV 342,741.82
Management has the responsibility to apply accounting standards when communicating with investors and creditors.
Management (or managing) is the process of overseeing the operations of a company, nonprofit, or governmental entity. It is both the science and the art of managing a company's resources.
Setting an organization's strategy and managing employee (or volunteer) efforts to achieve goals through the use of available resources, such as financial, natural, technological, and human resources, are included in management.
The terms "run the business" and "change the business" are used in management to distinguish between the continuation of the delivery of goods or services and the adaptation of those same goods or services to accommodate changing client demands - see trend.
The term "management" can also refer to managers, who are responsible for running a company.
Learn more about management here:
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Answer:
$635,750
Explanation:
Net working capital = Current Asset - Current Liabilities
= $603,750 + $185,000 - $153,000
the project's initial cash flow for net working capital
Answer:
Limited decision making
Explanation:
Limited decision making -
It is a consumer decision making process , which is applied , when the consumer purchases some product that is very much familiar to them , but still require more information of the goods or services , in order to make the perfect decision , i.e. , which brand or model is best for them , is referred to as limited decision making.
Hence, from the given scenario of the question,
The correct term is limited decision making.
Answer:
annual income = $70,292.52
Explanation:
initial outlay $900,000
in order to determine the net cash flows per year we can use the present value of an ordinary annuity:
PV = annual cash flow x annuity factor
- PV = $900,000
- annuity factor, 15%, 12 years = 6.1944
annual cash flow = $900,000 / 6.1944 = $145,292.52
annual cash flow = [(revenue - operating costs - depreciation) x (1 - tax rate)] + depreciation
- revenue - operating costs - depreciation = annual income
- tax rate = 0?
- depreciation = $900,000 / 12 = $75,000
$145,292.52 = annual income + $75,000
annual income = $145,292.52 - $75,000 = $70,292.52